Invite Me to the Parties
Third, Party
What is Aggregate Limit?
Company A has a limit of $20,000; Company B has a limit of $50,000, and Company C has a limit of $30,000. What is the combined amount that Company A and Company B will pay if the insured suffers a loss of $10,000? (round to the nearest cent)
What is $7,000?
This payout is meant to compensate/indemnify the third party for any/all damages done by the first party.
What are Compensatory Damages?
These are the four things that must be in place in order to determine negligence.
What is Duty, Breach of Duty, Damage, and Proximate Cause?
These are three examples of people who could be considered first party.
(some) POSSIBLE ANSWERS
Who are named insured, spouse (secondary named insured), resident relatives (any example), household residents
This term describes the amount that an entity would have to pay to replace an asset at the present time, according to its current worth.
What is Replacement Cost?
What is RC?
E's house costs $500,000 to rebuild. What is the minimum amount of coverage E needs in order to be compliant with the coinsurance clause?
What is $400,000?
This type of payout is meant to punish the first party for negligence.
What is Punitive Damages?
X has two houses that he wants to have insured under the same policy. One house is much more expensive than the other, so X wants a higher limit for that house. What limit type would be best for X?
What is Scheduled Limit?
R gets into a car accident by rear ending someone's truck. There is $5,000 in damage to the truck and $2,000 in damage to R's car.
The damage to the truck will be paid to the _____ party, the damage to the car will be paid to the ______ party, and these payments will come from the _______ party.
Third, First, Second
A venemous snake is an example of this type of liability, which describes when you are liable no matter what, as the associated risk is extremely hazardous.
What is Absolute Liability?
If R has a combined single limit of $75,000 and has an at fault accident causing $10,000 in BI damages to another driver, $30,000 to the passenger, $40,000 to the other vehicle, and damaged a stop light in the amount of $20,000; the insurance company paid $20,000 in attorney fees, $3,000 in investigative costs, and $250 in bail bonds. What is the most the policy will pay for R?
What is $98,250?
One type of limit for payouts is a split limit, which can be exemplified by the following:
25/50/15
These are the following values for each number in the split limit.
What is $25,000 per person, $50,000 per occurrence for all injuries, $15,000 per occurrence for property damage?
This additional coverage pays in addition to the policy limit when it comes to any costs that arise from the cost to defend the insured.
What is Supplemental Coverage?
When the ____ party suffers damages in a loss that are not specific, such as pain and suffering or scarring, the ____ party and/or their coverage may be responsible for paying this type of damage.
What are General Damages?
What are third party and first party?
This term describe what an insurance company uses in order to determine which valuation method is used to indemnify the policy holder for their loss.
What is Loss Settlement?
C has a house that will cost $100,000 to rebuild. It is insured for $70,000 and the policy has an 80% coinsurance provision. C's house suffers a $45,000 dollar loss. What will the insurance pay?
What is $39,375?
A payment method done by the insurance company. After a claim is made and liability is determined, the company will pay what is owed based on their own findings.
On the flipside, this is when the payout is determined by a judge or court of law.
What is Settlment?
What is Judgement?
This establishes protection for the insurable interest of a mortgage company or bank; states that the bank/company is entitled to the money left on the loan in any claim.
What is Standard Mortgage Clause?
These are the parties that the following entities would be a part of:
Your neighbor's child: _____ Party
Your cousin visiting from Kansas: _____ Party
Your sister that lives with you: _____ Party
Your 22 year old that lives in the dorms: _____ Party
The Mail Man: ______ Party
What is Third, Third, First, First, Third?
An _______ is held whenever there is a dispute regarding the value of a property; while an _________ is held whenever there is a dispute regarding who is and is not liable/negligent.
What is appraisal and arbitration?
B has a home insured for $240,000. It costs $400,000 to rebuild her home. With the Coinsurance provision being 80%, this is the amount that B would be indemnified if their loss was $200,000.
What is $150,000?
These are the two different types of compensatory damages, along with one example of each.
What are compensatory damages?
(EXAMPLES: bills, receipts, loss of wages, etc)
What are general damages?
(EXAMPLES: scarring, pain and suffering, loss of life, etc)
D's house is insured for $90,000 and costs $200,000 to rebuild. Assuming D has an 80% coinsurance provision, how much will D's insurance company pay if his house suffers a loss of $75,000?
What is $42,187.50?